Interview - OnMobile CEO Arvind Rao

The VAS business in India has taken a hit in recent years. Do you think it has been impacted due to the launch of 3G services?

In the past two years, there was a slowdown in the VAS business. The growth in India, which used to be 40-50 per cent annually till two years before, has now dropped to 10-20 per cent. The new subscribers are not using VAS much. 3G is, of course, one reason. The focus of the management at telecos is getting distracted towards it. But in the long run, 3G will be helpful for adoption of VAS, with rich video services.